Small businesses accredited as B Corps outpaced the wider market last year, reporting a 23.2 per cent increase in revenues between 2023 and 2024, compared with a national average of 16.8 per cent.
Figures released by B Lab UK suggest these certified enterprises – which commit to social and environmental standards – are also creating jobs at a quicker rate, growing headcount by 9.6 per cent while the general business population shrank by 0.5 per cent.
More than 1,000 businesses in London now hold a B Corp badge, the largest concentration of any global city. The certification process requires companies to complete more than 200 questions on five key areas: governance, workers, community, environment and clients, with an overall score of at least 80 out of 200 required to apply for accreditation. High-profile B Corp holders include the ready-meal brand Cook, alcohol-free beer firm Lucky Saint and paint-maker Farrow & Ball.
B Corp has faced recent criticism for accrediting large multinational brands such as Evian and Nespresso, which produce single-use products. Aneisha Soobroyen, co-founder of the fast-growing pet food label Scrumbles, said she was ending her brand’s certification. She described the scheme as “a marketing badge and greenwashing rather than a true mark of an ethical business” and will instead donate the £8,500 recertification fee to Save the Children.
In response, B Corp is formulating new standards to address perceived shortcomings. The updated criteria will require accredited businesses to meet strict minimum requirements in areas such as human rights, wages, environmental stewardship and climate action, preventing higher scores in one category from compensating for lower performance in another.
Despite the controversy, many British business owners remain enthusiastic. Josephine Philips, founder of clothing repairs start-up Sojo, believes that “doing good and doing well” go hand in hand. Certified as a B Corp since January 2024, Sojo has teamed up with Marks & Spencer, Arket, Paul Smith and Reiss to extend the life of garments. According to Philips, “being a B Corp contributes to this commitment” of transforming both business practices and the fashion industry at large.
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B Corp small firms outperform rivals with 23% boost in revenues